You hold a portfolio with the following securities:

You hold a portfolio with the following securities:
Security Percent of Portfolio Beta Return
X Corporation 20% 1.35 14%
Y Corporation 35% .95 10%
Z Corporation 45% .75 8%
Compute the expected return and beta for the portfolio.
A.  34.4%, .94
B.  9.9%, 1.02
C.  10.67%, 1.02
D.  9.9%, .94

 

Solution